French telco plans to launch Orange Bank in 2017 with partner Groupama
French telecommunications company Orange and compatriot insurance firm Groupama are currently negotiating a partnership to develop a new banking model.
The negotiations could result in Orange acquiring a 65% stake in Groupama Banque, enabling it to benefit from an existing operational infrastructure for the launch of Orange Bank, which is expected to occur in early 2017. The banking service will initially operate in France, followed by other European markets including Spain or Belgium, and is expected to offer standard banking services as well as savings, loans and insurance services.
The project is part of the telecom operator’s “Essentiels2020” strategic plan, which was announced in March 2015. The plan’s goal is to reach 400 million euro of revenue in financial services in 2018.
“Orange benefits from a unique combination of essential assets that will enable it to successfully launch a highly innovative, 100% mobile bank. These include a strong brand embodying key values such as security and reliability, a solid distribution network and above all the confidence of 28 million customers in France,” explained Orange CEO Stéphane Richard.
The telecom operator currently provides financial services in the Middle East and Africa through its Orange Money operations. The operator also recently launched its Orange Finanse service in Poland.
Orange confirms talks to acquire Bouygues Telecom
In related news, Orange confirmed it has renewed discussions with the Bouygues Group regarding potential consolidation with rival operator Bouygues Telecom.
“These discussions are not limited by any particular calendar and hold no commitment to any particular predefined outcome. The group is exploring the opportunities available within the French telecoms market, while keeping in mind that its investments and its solid position afford it a total independence in its approach,” the company said.
According to recent press reports, Orange could pay a total of 10 billion euros ($10.86 billion) in cash and shares for Bouygues Telecom.
